Participatory Notes investors put in Rs 1.51 lakh cr in 2012
They said the postponement of General Anti-Avoidance Rules (GAAR) by two years would further boost the investment through this route.
The P-note investments were on a steep uptrend this year till mid-March, but started declining sharply after the government in its Union Budget proposed GAAR taxation regime and certain retrospective amendments for taxing offshore transactions.
FIIs, the key driver of Indian markets, poured in USD 24.4 billion into Indian equities in 2012, about USD 5 billion below from the record purchases two years ago.
P-notes have been accounting for about 15-20 per cent of
total FII holdings in India since 2009, lower than 25-40 per cent of such holdings in 2008.
It was as high as over 50 per cent at the peak of Indian stock market bull run during a few months of 2007.
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